Which of the Following Is Not Considered to Be a Valid

question 46

Multiple Choice

Which of the following is not considered to be a valid performance measure of a waiting line system?

• A) the average number of customers waiting in line
• B) the average number of customers in the system
• C) the average amount of time customers spend waiting
• D) the system utilization rate
• E) the service pattern

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly linked to the production of goods, including indirect materials, indirect labor, and other indirect expenses.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders.

Machine-Hours

The total time machines are operated within a certain period, often used to allocate manufacturing overhead.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of goods, such as salaries of supervisors and the cost of factory utilities.